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RESPA Update
Final RESPA Rule Now
Available
The final RESPA rule is
now available -
click here to view. HUD has also established a comprehensive webpage
for the rule which you may view
here. TLTA staff will be reviewing the 340 page rule and providing
some analysis in the near future.
Please note, this rule will not be implemented until
January 1, 2010
- providing plenty of time to engage the federal government in an
attempt to make improvements. Your feedback will be vital to this
process and we welcome your comments. Please contact
Aaron Day
with questions or comments.
Hinojosa-Biggert Dear Colleague Letter Update and
HUD's Response
Rep. Ruben Hinojosa and Rep. Judy Biggert,
with much help from ALTA and TLTA, secured the last
of the signatures for
their letter urging the
US Department of Housing
and Urban Development (HUD)
to withdraw its
proposed RESPA rule and enter into a
joint rulemaking process with the Federal Reserve
Board. A total of 244 lawmakers in the US House
of Representatives signed the letter. Many thanks go
to TLTA’s Legislative Counsel in Washington, Jim
Hyland, who has worked very hard to deliver the
Texas delegation with much success.
This effort complements TLTA’s recent push with the
White House. Dawn Moore and TLTA staff went
to Washington to meet with HUD and Susan
Dudley, the top regulatory official at the
White House’s Office of Management and Budget (OMB).
Also in attendance was the incoming National
President of the National Association of Realtors,
the Chairman of the Texas Association of
Realtors, Chris Williston with the Independent
Bankers of Texas and the Vice President of
the Independent Community Bankers of America. The
meeting was a very important step in the process as
we presented the problems that the proposed rules
will create for our industries and the real estate
market. The HUD representatives present were
engaged and acknowledged that they are receiving a
great deal of criticism.
We have just learned that HUD Secretary Steve
Preston has submitted to OMB HUD’s revised RESPA
proposal, despite the Congressional letter asking
him to refrain from doing so. This development
underscores the importance of TLTA’s visit with
OMB. TLTA and others will continue to work to
persuade OMB to reject the HUD proposal. We will
continue to keep you updated on this critical issue.
Click here to read HUD's response to the
Hinojosa-Biggert letter.
HUD Won't
Withdraw Proposed RESPA Rule Changes
August 21, 2008
Inman News
The Department of Housing and Urban Development says
it's willing to modify, but not withdraw, a proposal
to overhaul loan disclosure forms and revamp rules
governing the provision of settlement services --
resisting calls by industry groups and a majority of
members of the House of Representatives to scuttle
the plan.
Click here to read the story.
RESPA Reform
Action Alert: Contact Your Congressman Today!
If you are a title
insurer or agent, lawyer, escrow officer or provide closings, the HUD's
proposed RESPA rule could have dramatically negative effects on your
business. Among many costly and burdensome provisions, the rule would
require the preparation and explanation of a closing script and loan
comparison document at closing. This requirement would:
• Double your time
spent on closings;
• Require you to understand and explain loan terms to borrowers at
closing;
• Make you responsible for borrowers understanding the terms of their
loans;
• Subject you to charges of unauthorized practice of law; and
• Increase your legal liability.
In addition, the
rule would unfairly assist the biggest mortgage lenders in gaining more
control over the real estate consumer. The largest lenders could
negotiate volume discounts with their affiliated settlement service
providers and push small providers out of the business.
Members in the
US
House of Representatives are requesting that HUD withdraw this harmful
rule and immediately begin crafting a better RESPA rule.
Please take just a few minutes to call your local Congressman
(Capitol Switchboard 202-225-3121) and ask them to sign the Dear
Colleague letter being circulated by Rep. Ruben Hinojosa (D-TX) and Rep.
Judy Biggert (R-IL) to HUD Secretary Steve Preston urging him to
withdraw the proposed rule and immediately begin a joint rulemaking
process with the Federal Reserve Board to provide better disclosures to
homebuyers.
Click here to find your Congressman.
TLTA Submits RESPA
Comments to HUD
TLTA thanks all of you who submitted comments to HUD regarding TLTA’s
concerns with their RESPA reform proposal. Thanks to the efforts of
Congressman Ruben Hinojosa (D-TX) and 147 co-signers of
a "Dear Colleague Letter," HUD extended the comment period from 60 to
120 days to provide for an adequate amount of time for the public to
review and comment on this extensive rule which will have significant
implications on the housing industry.
Click here to view the RESPA proposal.
Click here to review the RESPA comments filed by TLTA.
Click here for more information on RESPA, provided by ALTA.
More RESPA Topics:
Click on each for
more information.
Update on RESPA Reform –
Comment Period Extended!
(From
May 2008 Dateline)
Call to
Action: Send Your Comments on RESPA Reform to HUD by May 13
(From May 2, 2008
Breaking News)
HUD Releases
RESPA Reform Proposal-- Comment Period Open
(From March, 17 2008 Breaking News)
More Federal Issues
Senate Banking Committee Reviews "State of
the Insurance Industry: Examining the Current
Regulatory and Oversight Structure"
Last month, Congress continued to hold hearings
on legislation that would provide an
optional federal charter for insurance.
S
40 was introduced in March 2007 by Sen. John
Sunnunu (R-NH) and Sen. Tim Johnson
(D-SD). To date, they are the only
co-sponsors. The Senate hearing included all
the major interest groups including the
insurance agents, consumer groups and the
insurance commissioners. Senate Banking
Chairman Christopher Dodd, the Chairman of
the Senate Banking Committee, signaled openness
to allowing the life insurance industry to be
regulated at the federal level, while still
holding reservations whether it should also
apply to property-and-casualty lines. The
Ranking Republican on the Committee, Richard
Shelby said "I don't see anything
fundamentally wrong with establishing an
optional federal charter because I can see the
efficiencies of a large company, be it American
or European doing business in a few states,
including my own state." Shelby also noted that
American insurers could be placed at a
disadvantage compared to their European
competitors when the European Union formalizes
its new insurance regulations.
In the House of Representatives, a Subcommittee
of the Financial Services Committee reported HR
5840, introduced by Rep. Paul Kanjorski
(D-PA), to establish an Office of Insurance
Information in the Treasury Department. The
legislation would allow preemption of state
insurance statutes in very narrow
circumstances: where a state law is
inconsistent with federal policies entered into
on an international basis, and has the effect of
treating non US companies more favorably than US
companies. Neither of these bills is expected
to pass the Congress this Session, but they are
likely to be issues in the next Congress.
Bush Appoints
New HUD Secretary
On April 18, President George W. Bush announced his nomination of
Steve Preston, Administrator of the Small Business Administration
(SBA), to serve as the next Secretary of the US Department Housing and
Urban Development (HUD). Bush called SBA's Preston "a strong executive
with a quarter century of management experience" who "understands the
free enterprise system from every angle." If confirmed by the Senate,
Preston would succeed Alphonso Jackson, who resigned.
Click here to view comments by President Bush and Steve Preston.
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